In order for brands to satisfy the changing needs of consumers and to gain competitive advantage the number of brand extensions carried through is increasing constantly. This literature based work aims to identify influential factors for consumer acceptance of brand extensions and will have a closer look at the role of brand knowledge in this process. The focus will be on the evaluation of importance of the perceived fit and on determining how this factor can be used by marketers.
The first part of this work gives an insight into brands and brand management, as branding is the base for brand extensions. Then it concentrates on brand extension from a marketing point of view in order to create a common understanding for this strategy. Furthermore it gives details about the consumer-decision making process in order to allow the reader to understand how brands are perceived by consumers. The second part then talks about the consumer evaluation of brand extensions, by giving details about influential factors on this process and how this can be monitored by marketers. It then goes into detail about the perceived fit as influential factor. Finally the findings are discussed with regard to the research requests and conclusions are drawn.
Table of Contents
- 1. INTRODUCTION
- 1.1 PROBLEM STATEMENT
- 1.2 PURPOSE OF THE WORK
- 1.3 RESEARCH REQUEST
- 1.4 SCIENTIFIC APPROACH
- 1.5 COMPOSITION
- 2. BRANDING
- 2.1 PURPOSE OF BRANDS
- 2.2 STRATEGIC BRAND MANAGEMENT PROCESS
- 2.2.2 BRAND DEVELOPMENT STRATEGIES
- 2.2.3 CONCEPTUAL DIFFERENTIATION: LINE AND BRAND EXTENSION
- 3. BRAND EXTENSION
- 3.1 PURPOSE
- 3.2 INTERNAL AND EXTERNAL BRAND EXTENSION
- 3.3 OPPORTUNITIES AND THREATS
- 4. THE ROLE OF BRANDS IN BRAND EXTENSIONS
- 4.1 CONSUMER DECISION-MAKING
- 4.2 BRAND KNOWLEDGE
- 4.3 BRAND EQUITY
- 4.3.1 YOUNG AND RUBICAM’S BRAND ASSET EVALUATOR
- 4.3.2 CUSTOMER EQUITY
- 4.4 BRAND PERSONALITY
- 5. CONSUMER ACCEPTANCE OF BRAND EXTENSION
- 5.1 CONSUMER PERCEPTION OF BRAND EXTENSION
- 5.1.1 CATEGORY-BASED PROCESSING
- 5.1.2 DOMINANCE AND RELATEDNESS
- 5.2 INFLUENCING SUCCESSFUL BRAND EXTENSION
- 6. PERCEIVED FIT
- 6.1 DEFINITION
- 6.2 RELEVANCE
- 6.3 DIMENSIONS
- 6.4 INFLUENTIAL FACTORS
- 6.5 MEASURING FIT
Objectives and Key Themes
This literature-based Bachelor's thesis examines the factors influencing consumer acceptance of internal brand extensions, focusing on the role of brand knowledge and perceived fit. It aims to identify how marketers can leverage these factors to increase the success of brand extension strategies.
- The impact of brand knowledge on consumer perception and brand equity.
- The role of brand equity in successful brand extensions.
- The significance of perceived fit in consumer evaluation of brand extensions.
- The consumer decision-making process in relation to brand and purchase decisions.
- Strategies for influencing consumer perception of brand extensions.
Chapter Summaries
1. Introduction: This introductory chapter establishes the problem of increasing consumer choice and stimulus satiation, highlighting the challenge for companies to differentiate themselves effectively. It emphasizes the importance of consumer perception and positive brand associations for successful product differentiation and introduces the central research questions: which factors influence consumer perception of internal brand extension, and how does perceived fit influence consumer acceptance of brand extensions? The chapter outlines the purpose and scope of the thesis, its scientific approach (literature review), and the structure of subsequent chapters.
2. Branding: This chapter defines the concept of a brand, explaining its role in identifying and differentiating products from competitors. It emphasizes the importance of strategic brand management to adapt to changing market conditions and consumer needs. The chapter describes the strategic brand management process, highlighting brand development strategies, particularly the difference between line and brand extensions.
3. Brand Extension: This chapter focuses on brand extension as a marketing strategy, exploring its purpose, including cost reduction and brand equity enhancement. It distinguishes between internal and external brand extensions, focusing on internal extensions for the scope of the thesis. The chapter further details the opportunities (such as mobilization of latent demand and synergy creation) and threats (such as brand erosion and negative spill-over effects) of brand extension strategies.
4. The Role of Brands in Brand Extensions: This chapter delves into consumer decision-making processes, comparing rational and emotional models. It explains the crucial role of brand knowledge in shaping consumer attitudes and feelings toward a brand, encompassing brand performance, personality, judgments, and feelings. The chapter discusses brand equity and its components (differentiation, knowledge, relevance, and esteem), linking it to customer equity and the importance of building strong customer relationships. Brand personality and its influence on consumer behavior are also explored.
5. Consumer Acceptance of Brand Extension: This chapter examines how consumers perceive brand extensions, focusing on category-based processing, where consumers integrate their existing knowledge of the brand and product category. It introduces the concepts of dominance and relatedness (Herr, Farquhar, and Fazio) in influencing brand extension perception. The chapter concludes by identifying key factors (Sattler and Völckner) that influence successful brand extension, such as parent brand characteristics, marketing support, and the perceived fit between the parent brand and the extension product.
6. Perceived Fit: This chapter provides a detailed analysis of the perceived fit between a parent brand and its extension product. It defines perceived fit and explains its relevance in transferring positive associations and its potential negative effects on the parent brand if the fit is poorly perceived. The chapter discusses the dimensions of fit (complementarity, substitution, and transfer), identifying factors that influence fit perception (consumer mood and motivation, advertising). Various methods for measuring perceived fit are also critically assessed.
Keywords
Internal brand extension, consumer perception, perceived fit, brand knowledge, brand equity, brand extension success, consumer decision-making, marketing strategies, brand management.
Frequently Asked Questions: Factors Influencing Consumer Acceptance of Internal Brand Extensions
What is the main topic of this document?
This document is a comprehensive preview of a Bachelor's thesis examining the factors influencing consumer acceptance of internal brand extensions. It focuses on the roles of brand knowledge and perceived fit in determining the success of such marketing strategies.
What are the key themes explored in the thesis?
The key themes include the impact of brand knowledge on consumer perception and brand equity, the role of brand equity in successful brand extensions, the significance of perceived fit in consumer evaluation, the consumer decision-making process related to brand and purchase decisions, and strategies for influencing consumer perception of brand extensions.
What is the structure of the thesis?
The thesis is structured into six chapters: 1. Introduction (problem statement, purpose, approach); 2. Branding (purpose of brands, strategic brand management); 3. Brand Extension (purpose, internal/external extensions, opportunities/threats); 4. The Role of Brands in Brand Extensions (consumer decision-making, brand knowledge, brand equity, brand personality); 5. Consumer Acceptance of Brand Extension (consumer perception, category-based processing, influencing success); and 6. Perceived Fit (definition, relevance, dimensions, influential factors, measuring fit).
What is the purpose of the introduction chapter?
The introduction establishes the problem of increasing consumer choice and stimulus satiation, highlighting the challenge for companies to differentiate themselves. It emphasizes the importance of consumer perception and positive brand associations and introduces the central research questions focusing on factors influencing consumer perception of internal brand extension and the influence of perceived fit on consumer acceptance.
What is covered in the chapter on branding?
The branding chapter defines brands, their roles in product identification and differentiation, and the importance of strategic brand management. It details the strategic brand management process, including brand development strategies and the distinction between line and brand extensions.
What does the chapter on brand extension discuss?
This chapter focuses on brand extension as a marketing strategy, its purpose (cost reduction, brand equity enhancement), the distinction between internal and external brand extensions, and the opportunities and threats associated with this strategy.
What is the role of brands in brand extensions according to the thesis?
This chapter explores consumer decision-making processes (rational and emotional models), the crucial role of brand knowledge in shaping consumer attitudes, brand equity and its components (differentiation, knowledge, relevance, esteem), its link to customer equity, and the influence of brand personality on consumer behavior.
How does the thesis address consumer acceptance of brand extensions?
This chapter examines how consumers perceive brand extensions, focusing on category-based processing, the concepts of dominance and relatedness in influencing perception, and key factors (parent brand characteristics, marketing support, perceived fit) influencing successful brand extension.
What is the focus of the chapter on perceived fit?
This chapter provides a detailed analysis of perceived fit between a parent brand and its extension, defining it, explaining its relevance in transferring positive associations, discussing its dimensions (complementarity, substitution, transfer), identifying influential factors (consumer mood, motivation, advertising), and critically assessing methods for measuring perceived fit.
What are the keywords associated with this thesis?
The keywords include internal brand extension, consumer perception, perceived fit, brand knowledge, brand equity, brand extension success, consumer decision-making, marketing strategies, and brand management.
- Citar trabajo
- Victoria Homeier (Autor), 2012, Consumer Perception of Internal Brand Extension, Múnich, GRIN Verlag, https://www.grin.com/document/385115
